"You can't please everybody," said Aurolyn Rush, a PBX operator at the Grand Hyatt Hotel, referring to the 16 workers who voted against the contract. "Basically, it's a very good contract that just about everyone can live with. We're pretty ecstatic about it."

The new five-year pact runs through 2009 and is retroactive to August 2004, the expiration date of the last contract.

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Under the agreement, the average salary of the workers will reach $36,000 by the end of the contract, compared with $30,000 now. The contract also calls for a 69 percent improvement in worker pensions and a slightly reduced workload for room cleaners.

Tensions ran high during the dispute, which was marked by a two-week strike, a seven-week lockout and a union-led boycott of the hotels.

"We're very pleased," said Noah Griffin, spokesman for the San Francisco Multi-Employer group, which represented the hotels. "It's a good settlement, primarily for the workers, but also the city and the hotels themselves."